Which of the Following Statements Is Not True About Redemptions

question 63

Multiple Choice

Which of the following statements is not true about redemptions?

• A)Redemptions of Sec. 306 stock are generally treated as dividends to the shareholder.
• B)A sale of stock from one controlled corporation to another controlled corporation is treated as a redemption.
• C)Redemptions to pay death taxes are treated as dividends to the shareholder.
• D)A distribution in redemption of stock is generally a dividend.

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Definitions:

Benchmarking

The use of external and internal comparisons to plan for future improvements.

Incorporating

The legal process of forming a corporation, which is a type of formal business entity.

Quantitative Forecasting

The use of numerical data and statistical techniques to predict future events or trends.

Statistical Analyses

The process of collecting, examining, interpreting, and presenting data to discover underlying patterns and trends.